Payment processor TabaPay has announced its acquisition of the assets and affiliates of U.S.-based Banking-as-a-Service (BaaS) platform Synapse Financial Technologies. The deal, which remains undisclosed in terms, comes following a tumultuous period for Synapse, marked by a Chapter 11 bankruptcy petition and significant layoffs. Synapse, founded in 2014 and headquartered in San Francisco, offers a BaaS solution enabling enterprises worldwide to deploy various financial products through APIs, including card issuance, deposit, lending, payment, credit, and investment services.
Under the agreement, TabaPay, based in California, will absorb Synapse's brokerage, lending, credit, and debit card issuing platforms. Sankaet Pathak, Synapse's CEO and founder, is set to join TabaPay as part of the acquisition. Pathak expressed confidence in the transaction, citing TabaPay's financial stability and complementary solutions, which he believes will allow Synapse to enhance its core product offerings. This acquisition follows a trend in the BaaS sector, with distressed acquisitions becoming more common, as seen in similar circumstances with other fintech firms like Rize and Bond.
